KLCI remains in the red as investors stay on sidelines

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KUALA LUMPUR (Sept 18): The FBM KLCI remained in negative zone at the midday break on Thursday, weighed by losses at select blue chips ahead of Bank Negara’s monetary policy decision.

At 12.30pm, the FBM KLCI fell 5.04 points to 1,838.74.

Market breadth was negative with decliners leading advancers by 469 to 238, while 321 counters traded unchanged. Volume was 1.02 billion shares valued at RM759.27 million.

The top losers included BAT, Takaful, Aeon Credit, Cahya Mata Sarawak, PPB, RHB Capital, Hong Leong Industries, Sime Darby, KLK, Carlsberg, GAB and Teck Guan.

Sumatec was the most actively traded counter with 57.73 million shares done. The stock fell 4.71% or two sen to 40.5 sen.

The other actives included KNM, Nexgram, Pentamaster, Nih Sin, Olympia, Dutaland, PDZ, KTB and Pasukhas.

The gainers meanwhile included Far East, United Plantations, Nestle, Lafarge Malaysia, NPC, Berjaya Auto, United Malacca, Scicom and LPI Capital.

Regionally, Japanese shares jumped on Thursday after the dollar vaulted to a six-year peak on the yen as the Federal Reserve's outlook for rising rates underlined the diverging path between the United states and the rest of the rich world, according to Reuters.

In other regional share markets, the reception was mixed, with MSCI's index of ex-Japan Asian shares falling to 12-week lows, on the spectre of rising U.S. rates and slower economic growth in China, it said.

BIMB Securities Research said on Wednesday, stocks in Asia were broadly higher from buying support by foreign funds.

Nonetheless, it said the FBM KLCI continued with its consolidation as the index declined 3.52 points at 1,843.78 attributed to some foreign outflows.

“We have detected that net foreign outflows out of Malaysia has been gathering momentum of late with RM225.1 million on Monday and RM178.2 million yesterday.

“Despite the decline, the Malaysian market remains expensive on a market PE of 17x, second only to the Philippines at 19x.

“The lack of catalysts should see the local bourse trapped at current levels with the 1,850 as the immediate resistance,” it said.